Feeds

Verizon finds $1bn more for MCI

Still can't match Qwest

  • alert
  • submit to reddit

Boost IT visibility and business value

MCI likes the look of a new $7.6bn acquisition bid from Verizon even though the deal is almost $1bn less than the more flirtatious Qwest Communications has offered.

Verizon hiked the amount of cash it will pay MCI shareholders and added in provisions to its bid that would protect investors against a drop in Verizon's stock. The new deal is well above the $6.7bn offer Verizon had once put on the table but below the $8.5bn offer from Qwest.

"MCI’s Board has been closely and carefully evaluating all of the recent developments," said Nicholas deB. Katzenbach, MCI's Chairman. "We believe Verizon’s substantial increase in its offer, the strength of its competitive position and the financial certainty at close make this offer compelling to our shareholders, customers and employees."

MCI does seem quite committed to Verizon at this point. It has agreed to pay up to a $240m termination fee should the deal fall through.

Qwest has put a 5 April deadline on its bid for MCI. The company is hoping MCI shareholders will pick its cash over what MCI management sees as Verizon's substance. ®

Related stories

Qwest sets MCI April 5 deadline
MCI/Verizon/Qwest slanging match continues
'Desperate' Qwest ups bid for MCI
Verizon: Qwest can talk to Verizon bride MCI
15,000 jobs to go if Qwest/MCI gets green light

Boost IT visibility and business value

More from The Register

next story
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Backing up Big Data
Solving backup challenges and “protect everything from everywhere,” as we move into the era of big data management and the adoption of BYOD.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.